Fortis Healthcare's promoters quit, crisis looms

The promoters of Fortis Healthcare on Thursday resigned from the company's board, heralding an imminent crisis ahead for the Indian company.

According to a late night BSE filing on Thursday, promoters Malvinder Mohan Singh and Shivinder Mohan Singh have resigned.

The development happens days after the Delhi High Court upheld an international arbitral award of Rs 3,500 crore to Daiichi Sankyo against the former promoters of Ranbaxy Laboratories.

On global business front, Fortis was negotiating with Singapore-listed health care company RHT Health Trust to buy the entire asset portfolio of the firm for 46.5 billion Indian rupees (S$965.95 million).

RHT Health Trust Manager Pte Ltd said it has received a proposal from India-based Fortis to acquire all the sale securities held by RHT Singapore's wholly-owned subsidiaries, Fortis Global Healthcare Infrastructure Pte Ltd and RHT Healthtrust Services Pte Ltd, the company announced in a regulatory filing in November 2017.

Fortis, which operates its healthcare delivery services in India, Dubai, Mauritius and Sri Lanka, holds an indirect stake of about 29.76 percent of units in RHT.

With regards to the proposed sale, RHT Health Trust Manager has entered into a term sheet with Fortis, which provides for a sixty-day period to negotiate exclusively with each other. It remains to be seen whether the deal will go through now.

(With additional inputs from the Desk)

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